St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-12-25

|. tain that the '.pernicious activity" of
the tax man should be suppressed. Yet
this accumulation has been gradual, and
is hardly sufficient in itself to wholly
account for the sudden financial famine
which came upon the land. Nor do we
find our dealers, as rule, overstocked
with merchandise. On the cOntrary,we
are assured On every hand that trade
was never better. and that the increased
demand in all lines is such as to tax to
the utmost the facilities of our manu-
facturers and merchants. Nor do We
believe that real estate should bear the
whole burden of blame, though it is GER
tainly true that a patriotic desire On the
part of our citizens to become owners of
the soil: has at times been almost auni-'
verSal, and it is possible that Some CT
our people are to-day adding to their
patriotism the twin virtue of economy,
by reason of such ownership. 20 5r
Lit may also be true that the maturityI
of the notes given for deferred payments
may arrive in advance of the hopelSfnr
second purchaser, and his tardy coH
will occasion some WEAKNESS 10 1.e'
party "h0lding for RISE" Yet thecssh
paid to bind the contract was not anni-
Inflated, and though it may now be ;'lov-
fngly held" by other hands, it must still
be doing its work as part of the avail
able current wealth of the country; and
the hardship, if any. is largely personal
and has not yet touched disastrously the
general welfare.
My own conviction is that this cOndi-
ton, which is in general way desig-
mated as ''close money market" is the
combined result of all the causes above
mentioned, added to number which
nave not been mentioned. Among these
L would name. first, an unexampled ex-
pansion of all kinds of business. Mer-
chants find not only that the volume of
their trade has outgrown the capacity of
their stores and warehouses, but that
the increase of their business is vastly
| In excess OF the increase of their capital.
mus they are compelled to be large
borrowers. Manufacturers find that the
demands made upon them are far be-
yond the producing power of their mills
and machinery, and they must have
money or credit to enlarge them. If
these increases and engagements were
| the result of excitement and specula-
ton, there might be cause for grave ap-
prehension; but they are not-they ale
| the legitimate and proper results of the
rapid development of the country around
us, and especially northwest of us. This
| development is real and substantial.
There is no uncertainty about it. 1t is
within our own territory. under our own
observation and much Of it by our own
cltlzens; therefore the money invested
In this increased business and these en-
iarged manufactures, if properly man
aged, Will be profitable, and the intrin-
sic value of real estate IS increased by
every such enlargement and increase.
ALI this requires an increased amount of
money, and this distribution of money
causes an apparent decrease in the
amount in circulation, or, in other
words, a ''cloSe money market"
There are other causes not so pleasing
to review, but the effects of which tend
| directly to the same result. refer to
the so-called ''labOr disturbancesit
which unsettled the III nd and changed,
the purposes of many WAC would other
wise have invested largely in building
and other Improvements and anter-
| priSeS, the basis of which is labor and,
the material for which is almost the
exclusive product of labor, and the
prosperity of which is so entirely de-
pendent upon labor. 3bfUI
refer also to those giant speculative
combinations (Which justly so often re-.
suit i'll destruction TO those participating
in them such as lately caused the
downfall OF the Fidelity bank. That
institution is now in ruins and its man.
ayers are in prison, yet the losses to-
| those who innOcently eDtrust their say
ings to such institutions create a dis
trust as contagious as fever and more
fatal to financial progress, leading di-
rectly to wasting or boarding of money,
thus withdrawing it from channels of
productive enterprise.
The latter causes, however, are artifi-
cial, and to certain extent are self-cor-
recting, and SO have but little applica-
ton to the financial status, except as
they may partially account for tenn
porary absence of money from its accus-
toned uses. Our immediate prosperity
| depends upon the continued develop
ment of our own resources, efforts and
| enterprise. and is therefore reasonably
| assured.
Banks prosper only when the COM
| munity prOSpers. 1t is all error to sup
pose that they thrive upon the misfOr-
tunes of men, or that their profits are
greater in hard times. They share
| largely in the losses and reyerses which
| Overtake the business community. and
| they largely contribute to the develop
ment of the country and the building up
of public and private business enter
| prises. Hence the conclusion that, the
outlook for general business being en-
| couraging. the banking interests of our
section have no reason for alarm.